North Korea and China have adopted an accord on establishing a special fund for investment in North Korea.

The two sides signed the accord worth three billion yuan, or 530 billion won, last week in Beijing.

The China Overseas Investment Federation initially raised one billion yuan in capital to invest in mines, real estate and ports in the North.

With the fund, investments will also be made for the construction of a 367 kilometer-long high-speed railway that will link Sinuiju, Pyongang and Gaeseong.

The two countries reportedly plan to engage in such projects based on the method of build-operate-transfer under which Chinese firms will invest capital and operate related facilities for a certain period of time before collecting on investments.

Attention is being drawn to whether the North will actively open itself up and pursue economic reforms as the adoption of the latest accord comes about a month after Jang Song-thaek, vice chairman of North Korea's National Defense Commission, visited China.